Polyethylene is a thermoplastic polymer build form ethylene molecules. Polyethylene is generally used for packaging purposes. It has excellent mechanical, chemical and electrical properties. Moreover, they are cheap and electrical and chemical resistant.

Market Size & Forecast

Global polyethylene market is anticipated to flourish at a CAGR of 4.2% over the forecast period. In terms of volume, global polyethylene market has crossed 160 Million tons in 2016. Rising utilization of polyethylene and wide scale application in various industries are driving the growth of the global polyethylene market.

In the regional platform, with more than 50% market share, Asia Pacific dominated the overall polyethylene market in 2016. Further, Asia Pacific is expected to continue its dominance over the forecast period owing to the rising demand for polyethylene from manufacturing industries. Additionally, development of new industries in the developing economies of Asia Pacific is anticipated to supplement the growth of polyethylene market in the region. China is a major contributor for the growth of global polyethylene market. Moreover, China accounted for more than 25% market of global polyethylene market in 2016. Besides this, India is also expected to showcase a significant rise in the consumption of polyethylene owing to increasing demand from packaging, automotive and other industrial applications.

North America is expected to witness significant growth during the forecast period due to the enhancement of retail, housing and automotive sector. Europe polyethylene market is expected to grow at a high pace over the next few years on the account of recovery of automotive and construction industry in the region. Middle East & Africa polyethylene market is estimated to witness lucrative growth over the forecast period. This growth can be attributed to development of various plastic processing industries in the region.

On the basis of application, the global polyethylene market has been segmented into packaging, automotive, electrical and electronics and other application. Packaging segment is anticipated to dominate the overall market of polyethylene during the forecast period. Heavy utilization of polyethylene for manufacturing packaging products such as bottle is expected to be the key factor behind the growth of packaging polyethylene segment.

Middle East and Africa (GCC, North Africa, South Africa & Rest of Middle East and Africa) Market Size and Y-O-Y Growth Analysis

Growth Drivers & Challenges

Rising demand for packaging material is anticipated to be the dynamic factor behind the growth of global polyethylene market. Apart from this, rising utilization of polyethylene in automotive sector is expected to garner the growth of global polyethylene market. Moreover, growth and expansion of industries such as electrical and electronics, automotive and food industry in developing nations is anticipated to bolster the demand for polyethylene products in the upcoming years.

Rising disposable income and increasing population across the globe is likely to boost the growth of polyethylene market during the forecast period. Further, technical advancement and new product developments such as high voltage cross linked polyethylene is anticipated to swell the demand for polyethylene in near future.

In contrast, environmental issue coupled with stringent government regulation is anticipated to dampen the growth of global polyethylene market. Further, availability of alternatives such as paper grocery bags is likely to limit the demand for polyethylene during the forecast period. Moreover, volatility in the price of raw material is also expected to negatively impact the growth of the global polyethylene market.